Sara Crovitz talks to press re. new SEC guidance on proxy advisers

Sara Crovitz, member of the Fiduciary Governance Group, spoke with Fund Intelligence on the new guidance approved by the Commissions to enhance transparency regarding the recommendation proxy advisers make with respect to proxy voting decisions. We will have a client alert on these developments over the new few days.

A wider net in 401(k) litigation

A recent article in InvestmentNews highlighted recent 401(k) litigation brought against small plans. While this type of litigation was traditionally brought against fiduciaries of large plans, plaintiffs’ firms have begun to target plans as small as $9 million. These suits are typically settled, rather than decided on the merits, but the risk of litigation has instilled fear and sensitivity in plan sponsors. One of the best defenses is a prudent process.

SEC announces open meeting on investment adviser proxy issues

The SEC has announced that it will hold a public meeting on August 21 @ 10 am re:

  • whether to publish guidance regarding the proxy voting responsibilities of investment advisers under, inter alia, Rule 206(4)-6 under the Investment Advisers Act of 1940; and
  • whether to publish an interpretation and related guidance regarding the applicability of certain rules, which the Commission has promulgated under Section 14 of the Securities Exchange Act of 1934, to proxy voting advice.

We will track these developments carefully.